Zions Bancorporation (NASDAQ: ZION) received a fresh boost on Friday, October 17, 2025, when David George of Baird upgraded the regional bank’s stock to an Outperform rating, setting a $65 price target—significantly above its current trading price of $46.93. This upgrade signals renewed confidence in Zions’s prospects and suggests meaningful upside potential for investors willing to look past recent volatility and near-term headwinds.
Recent Price Action Reflects Investor Cautiousness Amid Rally Attempts
Following this upgrade, ZION’s shares have shown noticeable activity, closing at $46.93, up 4.35% on unusually heavy volume of over 5.5 million shares—nearly four times its average daily trading volume of 1.5 million. Despite this pop, the stock remains approximately 26% below its 52-week high, and volatility metrics indicate a relatively restless trading environment with weekly price swings near 3.85%. The beta of 0.91 points to a stock that generally moves in line with the broader market but with a slightly dampened reaction. Such trading patterns reveal a market uncertain about Zions’s near-term trajectory, yet sensitive to positive analyst revisions and fundamental catalysts.
Historical Performance Reveals Recent Weakness Amid Broader Market Pressures
Over the past month and quarter, ZION has struggled, shedding 18.4% and 17.4% respectively—moves that outpace many peers in the regional banking space. Even over a 12-month horizon, the stock is down just over 6%. These declines come in a backdrop of increased volatility and a cautious credit environment, which have collectively weighed on financial stocks. Elevated share turnover—averaging 2.5 million shares daily over the past 10 days compared with 1.6 million across the last three months—highlights the heightened attention and repositioning among investors navigating uncertainty. This volatility and recent underperformance underscore the challenges facing Zions but also highlight potential entry points for contrarian investors.
Strong Earnings Spur Confidence, With Healthy EPS Surprise Growth
Backing Baird’s constructive view is Zions’s robust earnings performance. The bank’s most recent quarterly earnings, reported July 21, 2025, showcased an adjusted EPS of $1.58, comfortably surpassing consensus estimates of $1.31—a 20.6% positive surprise. This marks a notable acceleration from the prior quarter’s more modest surprise of 4.2%, reflecting improving operational leverage and solid credit cost management. Earnings quality appears resilient, suggesting that Zions is navigating a complex macroeconomic landscape with greater effectiveness than many of its regional counterparts. Sustained earnings upside like this often drives analyst upgrades and opens the door for higher price targets.
Analyst Consensus Shows Cautious Optimism with Limited Sell-Side Support
The current consensus among analysts covering Zions is cautiously favorable. Of 14 ratings issued in the past 90 days, four are Buy, ten Hold, and critically, no Sell recommendations have surfaced. The consensus price target across these firms stands at a healthy $63.21, indicating upside of roughly 35% from present levels. The highest price target reaches $70, reflecting bullish expectations among the most optimistic strategists. Baird’s recent move to Outperform and a $65 target adds weight to this positive skew, hinting at potential fundamental improvements yet to be fully discounted by the market.
Stocks Telegraph Grade Reflects a Moderate Fundamental Position
Zions carries a Stocks Telegraph investment grade score of 44—a moderate rating that captures a mixed fundamental outlook. This score suggests that while the bank shows strength in profitability and earnings momentum, it faces headwinds in areas such as growth initiatives or balance sheet quality relative to peers. Investors should view this grade as indicative of a bank in transition: one with solid core operations but still working to address structural or cyclical challenges inherent in the regional banking sector.
Conclusion: A Compelling Opportunity for Patient Investors Amid Transitional Dynamics
Zions Bancorporation’s recent upgrade and solid earnings reveal a company poised for upside, though not without risks. The bank’s current valuation and price action reflect lingering uncertainties, particularly in credit quality and macroeconomic conditions. However, Baird’s Outperform rating, along with a consensus target near $65, suggests that patient, value-oriented investors willing to weather late-cycle pressures could find attractive entry points here.
This stock is best suited for investors comfortable with moderate volatility and seeking exposure to a regional bank that appears to be navigating a challenging environment better than many of its peers. While headwinds remain, the significant analyst upside and recent earnings resilience imply a path toward recovery and outperformance. Monitoring trading volumes and updates to earnings guidance will be critical in determining when the market’s mood might shift from cautious to confident. For now, ZION stands as a watchlist candidate with upside potential supported by improving fundamentals and growing analyst conviction.
